The AUD/NZD currency pair saw mild dip-buying interest near the 1.0815 level during Wednesday’s Asian trading session, though the rebound failed to sustain momentum. The modest uptick lost steam following the Reserve Bank of New Zealand’s (RBNZ) latest policy announcement, with the cross retreating toward session lows in recent trade.
As anticipated by markets, the RBNZ reduced its Official Cash Rate (OCR) by 25 basis points to 3.25% from 3.50% at the conclusion of its May policy meeting. The central bank also revised its interest rate projections, forecasting the OCR at 3.12% by September 2025 and 2.87% by June 2026—guidance that reinforced expectations for further monetary easing. Despite the dovish tone, the New Zealand Dollar (NZD) edged higher post-announcement, applying downward pressure on the AUD/NZD exchange rate.
Meanwhile, the Australian Dollar (AUD) found underlying support from a slight uptick in monthly domestic consumer inflation, which may have cooled market expectations for a July rate cut by the Reserve Bank of Australia (RBA). This inflation print bolstered sentiment around the AUD, suggesting potential for renewed buying interest in the AUD/NZD pair and a possible near-term upside.
Attention now shifts to the upcoming press conference by RBNZ Governor Christian Hawkesby. His remarks are expected to offer further direction for the NZD and could provide the next catalyst for movement in the AUD/NZD cross.
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